Finance On A £4000 Car

[chrissa1]

How much would I be charged to buy the above. I have a good credit score now, so was wondering if anyone knew how much per month I would be charged. Thanks.

[Islay]

It varies Chrissa depending on what sort of APR they charge - your deposit etc etc
Find out what they would charge - then shop around - it may be cheaper to get a credit card with 0% on it pay it off and get rid of it if you no longer need it.

[chrissa1]

Do you know if I can do this online and will it show up on my credit report?

[Islay]

Are you buying from a garage Chrissie or private?
A lot of the credit cards today have a pre approval scheme which I believe does not show up on your credit record.
But Experian allow you to go onto their site and do a check to see who will accept you for credit cards.

[chrissa1]

I’d be buying from a garage who sells very good secondhand cars.

[Islay]

OK ask them if they can offer finance and see what he will charge you then go away and look and see what is out there.

[Buenchico]

This calculator provides a good starting point:
https://www.carfinance247.co.uk/car-finance-calculator

[chrissa1]

That was very interesting, Chris. Thanks.

I know he does offer finance, Islay.

Thanks, guys.

[ToraToraTora]

use a 0% credit card, they'll charge you up to 3% one off charge that's it if you repay within the time. Also the finance and car will not be related so it will pass an HPI check so you can sell it again when you want.

[EDDIE51]

If you have a good credit score then get a bank loan and use it to pay cash. The interest on the bank loan will be a lot less than interest on a loan from a finance company or car dealer.

[chrissa1]

Both good points, ttt and Eddie. Thanks. I’ll give that some thought.

[ubasses]

Before looking to go down the credit card route, ask the dealer if he will accept one. Since retailers are no longer allowed to pass on the card charge to the customer some garages have stopped accepting them for car purchases. Many have always put a maximum that they will allow you to pay on a card.

[chrissa1]

Thanks for that ubasses.

[Hymie]

I’ve never purchased a car on credit, but understand that some garages may offer you loan terms on a ‘Flat rate’ rather than quoting an ‘APR’ for the loan.

Just so you know, on a flat rate loan, you are deemed to owe the full amount throughout the loan period for the purposes of calculating the interest – rather than giving you credit for the amount paid off during the loan period.
So if tempted to take out a flat rate loan, always ask for the effective APR you will be paying.

[chrissa1]

Thanks for that, Hymie.

You say you’ve never purchased a car on credit. Does that mean you’ve always had £15k - £20k available to pay cash?

[Hymie]

Yes, but the most I've ever paid for a car was £11k

[chrissa1]

Ok. Nice one. :)